Affected by the rumor that Qingshan holdings was forced to close positions, the 100 billion big white horse Zhejiang Huayou Cobalt Co.Ltd(603799) ( Zhejiang Huayou Cobalt Co.Ltd(603799) . SH) collapsed and fell to the limit on March 8.
On March 8, Zhejiang Huayou Cobalt Co.Ltd(603799) opened slightly higher and continued to decline, sealing the limit at about 10:00 a.m. As of the closing, there were still 55000 hand sales orders that failed to escape.
According to recent market rumors, Glencore, a global mining giant, forced Qingshan holdings on LME nickel. Qingshan holdings did not deliver 200000 tons of nickel in an empty order. At the same time, Russian nickel could not be delivered because it was kicked out of the exchange. The 200000 ton nickel empty order issued by Qingshan holdings may not be delivered. Glencore may further claim its 60% equity in Indonesia’s nickel mine, and the floating loss of Qingshan holdings will exceed US $8 billion.
Meanwhile, the price of nickel on the London Metal Exchange soared in the past two days. On March 8, LME nickel peaked at $100000 / ton, and then fell back, but it still closed at about $80000 / ton. Since 8:15 London time (16:15 Beijing time), the London Metal Exchange has suspended nickel contract trading in all places of LME.
The crazy rise of nickel price makes Qingshan holding in a dilemma – closing or holding positions will face large losses.
According to the financial Associated Press, in response to the above matters, the relevant person of Qingshan Holdings said, “the company has been in a meeting this morning and is sorting out the relevant materials and contents. At that time, it will make a unified public response. It is uncertain whether it can respond today (March 8).”.
Castle Peak holdings is the partner of Zhejiang Huayou Cobalt Co.Ltd(603799) in Indonesia nickel project. The major bad rumors of Qingshan holdings also brought down the share price of Zhejiang Huayou Cobalt Co.Ltd(603799) .
In response to the above rumors, the interface news called Zhejiang Huayou Cobalt Co.Ltd(603799) secretary office, but no one answered.
Zhejiang Huayou Cobalt Co.Ltd(603799) is closely related to Qingshan holdings, and about 80% of the company’s long-term accounts receivable may be related to Qingshan holdings. By the end of September 2021, the company’s total accounts receivable from Indonesia vidabe Industrial Park Co., Ltd. (hereinafter referred to as IWIP company) and veinstone Investment Limited (hereinafter referred to as “vistone”) accounted for 83% of the long-term accounts receivable.
Figure: Zhejiang Huayou Cobalt Co.Ltd(603799) some accounts receivable
IWIP is a joint venture between Zhejiang Huayou Cobalt Co.Ltd(603799) and Zhenshi group, Contemporary Amperex Technology Co.Limited(300750) and Qingshan holdings to jointly invest in the development of vidabe Industrial Park project in Indonesia. The business scope of the project includes logistics system, airport, hotel and construction supporting system, so as to provide various basic services for enterprises in the park.
Vidabe Industrial Park in Indonesia is an industrial park for comprehensive development and utilization of nickel, chromium and iron ore resources, covering a complete industrial chain from upstream raw material nickel ore mining, ferronickel smelting to downstream nickel product deep processing. At present, more than 20 Chinese funded enterprises including Qingshan holding, Chengtun Mining Group Co.Ltd(600711) and Contemporary Amperex Technology Co.Limited(300750) Bangpu recycling.
Vistone is a Hong Kong platform company jointly established by Zhejiang Huayou Cobalt Co.Ltd(603799) to cooperate with Indonesia’s nickel resources project, Zhenshi group, Contemporary Amperex Technology Co.Limited(300750) and Qingshan holdings. Its main purpose is to invest in the thermal power generation project in Indonesia’s vidabe Industrial Park and support the smelting of laterite nickel ore in the industrial Park.
The businesses of the above two companies are carried out around the nickel mine of Zhejiang Huayou Cobalt Co.Ltd(603799) in Indonesia Zhejiang Huayou Cobalt Co.Ltd(603799) 2020 annual report shows that in 2018, the company started the nickel cobalt hydroxide hydrometallurgy project with an annual output of 60000 tons of nickel metal in Indonesia in cooperation with Qingshan iron and Steel Group, laying the foundation for nickel raw material supply for the transformation and upgrading of the company to new energy lithium battery materials.
In March 2021, Castle Peak holdings signed a high nickel matte supply agreement with Zhejiang Huayou Cobalt Co.Ltd(603799) , Cngr Advanced Material Co.Ltd(300919) and Cngr Advanced Material Co.Ltd(300919) . The three parties agreed that Castle Peak holdings would supply 60000 tons of high nickel matte to Zhejiang Huayou Cobalt Co.Ltd(603799) and 40000 tons of high nickel matte to Cngr Advanced Material Co.Ltd(300919) within one year from October 2021.
However, the project has not yet reached production capacity. On March 8, Zhejiang Huayou Cobalt Co.Ltd(603799) responded to the above project, saying that some production lines of Indonesia Huayue 60000 ton nickel metal nickel cobalt hydroxide hydrometallurgy project are currently in the stage of commissioning and trial production, and it will take some time for the project to reach production.
In addition, the future nickel price trend is bound to have an impact on Zhejiang Huayou Cobalt Co.Ltd(603799) and Qingshan holdings.
Huatai futures pointed out that nickel is still in the pattern of low inventory, strong reality and weak expectation. Before there is an obvious inflection point in inventory and the actual supply and demand turns into surplus, nickel price is still treated with more ideas.
